Chicago Board Options Exchange, Incorporated

Cboe Exchange, Inc.

Edward T Tilly

Eileen C Smith

Anthony Montesano

Stuart J Kipnes

Anthony J Carone

Mark A Esposito

James Gazis

Robert Hocking

Jordan Newmark

Brent Coonrod

Christopher Gust

A method is provided for a virtual floor trading implemented via an exchange computer system. The method includes maintaining a virtual environment that facilitates audio-visual interaction between a plurality of remote market participants; establishing a secure connection with a computing device; receiving, from the computing device, information relating to a financial instrument transaction order; providing the information relating to the financial instrument transaction order to the plurality of remote market participants; receiving a response to the financial instrument transaction order from at least one remote market participant from among the plurality of remote market participants; providing information relating to the response to the plurality of remote market participants; and facilitating a transaction based on the information relating to the financial instrument transaction order, the information relating to the response, and one or more order matching rules.

Virtual trading floor

Methods, systems, and apparatus, including medium-encoded computer program products, for tracking and visualizing an order are described. An exchange computer system (ECS) can receive an order from a user, generate an order and tag the order with the order identification. The ECS can transmit data to the user that causes a graphical user interface (GUI) to display tracking status. The ECS can conduct an operation associated with the order, and a stage of order execution can be determined. The order execution stages can vary based on a type of the order. Data indicative of the stage of the order execution and the order identification can be obtained in response to receiving the request for information indicative of the order status of the order. The ECS can transmit data that causes a GUI to display the order status that indicates the stage of the order.

Order tracking and visualization

A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, but limiting market making to only those entities having a physical presence on the floor of the exchange. Methods of enhancing the hybrid electronic and open-outcry exchange also include automatically eliminating crossed quotes and locked quotes while permitting certain orders to trade against locked quotes.

Hybrid trading system for concurrently trading securities or derivatives through both electronic and open-outcry trading mechanisms

A method of providing an automated auction for internalization for the purchase or sale of securities or derivatives in an exchange is disclosed. The method may include receiving an order at an electronic trade engine, disseminating a request for price message to at least one user in response to receiving the order, receiving a one-sided response message representative of a participant-type in response to the request for price message, selecting an allocation algorithm from a plurality of allocation algorithms, initiating the selected allocation algorithm and allocating the order according to the participant-type upon termination of the selected auction. The system may include an electronic trading engine configured to disseminate an auction message in response to an order, a database of allocation algorithms, and a trade processor for initiating an auction according the one of the allocation algorithms and terminating the auction upon defined early termination events.

Method and system for providing an automated auction for internalization and complex orders in a hybrid trading system

A system and method for trading derivatives in penny increments while disseminating quotes for derivatives in nickel/dime increments is disclosed. A trading engine receives quotes for a derivative in penny increments from at least one entity. The trading engine rounds out the quotes for the derivative in penny increments to quotes for the derivative in nickel/dime increments. The quotes in nickel/dime increments are aggregated and disseminated. The trading engine receives bids and offers to take positions in the derivative based on the aggregate quotes for the derivative in nickel/dime increments and executes trades for the derivative by matching bids and offers to buy and sell positions in the derivative.

System and method for trading derivatives in penny increments while disseminating quotes for derivatives in nickel/dime increments

An automated system for matching orders from a virtual trading crowd in an exchange configured for trading securities or derivatives is disclosed including an electronic trade engine operative to receive an order or a quote for a security or derivative at the exchange, the trade engine further operative to disseminate a request for a price message to a plurality of market makers quoting a class in response to receiving the order or the quote, an electronic book in communication with the electronic trade engine, the electronic book operative to store at least one order or quote received by the electronic trade engine, a database including an allocation algorithm, the database in communication with the electronic trade engine, and a trade processor in communication with the database, the trade processor operative to analyze and execute orders or quotes according to the allocation algorithm selected from the database.

Automated trading system for routing and matching orders

A method of providing orders to a virtual trading crowd in an exchange prior to automatically linking the order to an away market is disclosed. The method may include receiving a marketable order for a security or derivative at the exchange, wherein the exchange has a price that differs from a national best bid or offer price, routing the marketable order to a trade engine, disseminating a request for price message to all market makers quoting a class in response to receiving the marketable order, the request for price message including a price equal to the national best bid or offer price, receiving a response message at the electronic trade engine in response to the request for price message from at least one market maker, initiating a quote trigger, wherein the quote trigger occurs for a period of N seconds, and allocating the order according to an allocation algorithm, wherein an order size of each market maker is capped to prevent inflation of an allocated portion of the order.

Method and system for providing order routing to a virtual crowd in a hybrid trading system

A system and method of allocating orders in an exchange configured for trading by a combination of electronic and open-outcry trading mechanisms is provided. One method includes permitting multiple quotes to be disseminated to the market, and providing market making rights of varying degrees to entities having a physical presence on the floor of the exchange and entities remotely located away from the trading floor. The system includes a trade engine configured for receiving orders from market makers on and away from the trading floor. The system also includes executable instructions for allocating to designated primary market makers a portion of an incoming order remaining after first trading against public customer orders.

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Barrington, IL, United States of America

Edward T Tilly